4 hours ago
23
The Forum of Commissioners of Finance under the Federation Account Allocation Committee (FAAC) calls for immediate intervention from the Nigerian National Petroleum Company Limited (NNPCL) regarding the failure to remit approximately ₦200 billion to the federation account.
The forum reports that since October 2024, NNPCL has only made a single, incomplete remittance of less than ₦200 billion to the federation account.
Naija News understands that this has led to a dispute between the states and the corporation, which was cited as the reason FAAC could not hold its regular monthly meeting last week.
It is also understood that discussions are ongoing between the two parties to find a resolution.
The Chairman of the Forum, Akin Oyebode, told The Nation that, “Subsidy ended in October 2024. Since then, NNPCL has only made one incomplete payment of under ₦200 billion to the federation.”
Oyebode explained that states and local governments need additional funds to meet their responsibilities.
He clarified that NNPCL is responsible for three primary types of payments: royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), taxes to the Federal Inland Revenue Service (FIRS), and dividends to the federation as a shareholder.
Due to NNPCL’s irregular payments, a reconciliation of subsidy arrears is underway to determine whether the federation owes NNPCL or vice versa.
Oyebode emphasized that until this reconciliation is finalized and a payment schedule is agreed upon, NNPCL must continue to fulfil its financial obligations to the federation.
Regarding the postponed FAAC meeting, Oyebode stated that talks are still ongoing to establish a clear framework for engagement with NNPCL.
“If NNPCL presents a reasonable position, the meeting will be held soon. Commissioners are ready to return to Abuja,” he mentioned.
Oyebode dismissed suggestions of any conflict, insisting that both sides are working towards a fair resolution.
He also highlighted that President Bola Tinubu’s subsidy removal policy has played a significant role in driving these financial discussions, which were not possible under the previous subsidy framework.
Regarding NNPCL’s irregular remittances, Oyebode expressed hope that the reconciliation process would be concluded within weeks, allowing both parties to agree on a repayment plan.
Should it be determined that the federation owes NNPCL, adjustments to the revenue allocation will be considered. Conversely, if NNPCL owes the federation, it will be required to propose a repayment plan.
Oyebode expressed confidence that the issue would be fully resolved by the end of 2025.
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